Is the credit default swaps market telling us anything right now? Well, these derivatives for bulge bracket investment banks have been bid up quite a bit recently, according to the Financial Times. Some may see it as a sign that the subprime sector is causing a very stubborn anxiety. This against a backdrop of more concern about the ever rising proprietary risks that top banks seem to be taking to keep their earnings streaking ahead. Interestingly, after Lehman's results, for example, the cost of this "debt insurance" rose to 44 basis points from 36 points Monday. That's about double the amount since January. The move seems to belie the current sentiment [1]. Other banks have witnessed similar increases. Indeed, the top five brokers are trading at levels equivalent to a rating just a few notches above Moody's junk status.

For more:
- here's the article [2] from MSN